5 Ways You Sabotage Hopes of Getting Rich

Photo (cc) by StockMonkeys.com

“If only my income was greater,” or “If only I had a million bucks.” Sound familiar?

Well, even if one of those things was true, you’d probably do the same thing you’re doing now: Spend too much!

It is no secret that many Americans spend much more than they earn. That is why household credit card debt is through the roof.

By contrast, the relatively few great savers in our nation let their money work for them. They build up wealth over a long period of time, even if they don’t make a great salary.

Seeing modest savings grow into a financial fortune is a joy the habitual spender never will know.

Here are five possible reasons why you can’t save a dollar — and why your money will never work for you unless you change now:

1. You will not face your situation

When was the last time you sat down and really assessed your financial situation?

If it has been a long while, take action now. Sometime in the next two weeks, do an in-depth financial evaluation.

Start by reviewing your bank statements. Where is your money really going? Much of it probably goes to pay bills, but does the rest go into a savings account or investments? Or do you waste it?

While it’s fine to treat yourself, it’s easy to get carried away. It is not financially wise to both enhance your nail polish collection with each paycheck and continuously head to the spa. You need to make a choice.

Regardless of where the problem lies, now is the time to get to the root of it and start making changes.

During your financial self-evaluation, look at your credit card statements and see how much you actually owe. Pay special attention to the amount of cash you are throwing away each month on interest.

Once you have a clear picture of how much you owe, start tracking your expenses. Keep receipts for every purchase you make in the next 30 days.

At the end of that period, scrutinize your receipts. That should give you a clearer idea of the problem areas.

Then, you’ll be ready to set up a new spending plan. Check out “How to Develop an Effortless Budget You’ll Stick To.”

2. You refuse to discipline your desires

Perhaps your philosophy is “If I want it, I buy it” — even if your bank account advises otherwise. After all, you work hard, so why not enjoy life?

Unfortunately, there’s a slight problem with that approach: While tomorrow is not promised to any of us, adopting a short-term mentality toward your money is nothing short of foolhardy.

If you spend like a maniac now, with a reckless disregard for your wallet, you will surely pay for it many times over later on.

Take a look at “5 Ways to Game Yourself Into Saving Cash” to get back on track.

3. You are addicted to debt

Many people never learn to make do with what they have. Instead, they create a posh lifestyle supplemented by any and every ounce of credit on which they can get their hands.

As a result, they have a staggering amount of debt.

I’m not suggesting you should live in a hovel or a dive. But you must learn how to be disciplined with your money before you borrow from a credit card company.

If credit card debt seems like a normal part of life, you may have a problem. Still in doubt? Take a look at “10 Signs You’re a Credit Card Addict.”

4. You let the wrong things motivate you

As humans, we are wired to want more. But what is your motivation for coveting material goods?

Are you one of those people who always eyes the proverbial Joneses, looking at the new car parked in their driveway?

Imagine for a moment that it is you who owns that shiny new thing. Do you really think it would make you happy? Is your desire for the new car sincere? Or is it simply envy of a lifestyle displayed by the aforementioned neighbor or your favorite celebrity on TV?

If you want material goods for the wrong reasons — such as to fill a hole in your soul — no amount of money will ever be enough.

And remember, things aren’t always how they appear. The family you envy could be robbing Peter to pay Paul, and falling deeper into debt to live in their dream home and drive that car.

5. You have lost hope

If you are locked into a cycle of runaway spending and soaring debt, it’s easy to throw in the towel and just accept that you will be poor forever. But that is no way to live.

Is there still hope of turning things around? Most definitely. The first step to a solution is acknowledging that you have a problem.

Then, take action. Read “8 Smart Ways to Pay Off Debt Fast.” Once you’ve gotten your financial house in order and begin to save, you will feel like you’re in control of your life again.

Eventually, you just may save enough to begin to enjoy the finer things in life in a financially responsible manner.

What steps have you taken to make your money work for you? Let us know in the comments below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
4 Streaming TV Services That Cost $20 a Month — or Less
4 Streaming TV Services That Cost $20 a Month — or Less

Here’s how to ditch cable and satellite TV — and save a bundle — without giving up your favorite shows.

8 Ways to Slash the Cost of Homeowners Insurance
8 Ways to Slash the Cost of Homeowners Insurance

Reviewing this critical insurance policy takes a little effort, but it pays off big.

Eat This Food If You Want to Avoid Alzheimer’s Disease
Eat This Food If You Want to Avoid Alzheimer’s Disease

One type of food associated with the Mediterranean diet offers especially large benefits.

How Baby Boomers Are Earning an Extra $573 a Month
How Baby Boomers Are Earning an Extra $573 a Month

In the gig economy, baby boomers are out-hustling their younger competition. You can cash in, too.

8 Award-Winning Products That Impressed 40,000 Shoppers
8 Award-Winning Products That Impressed 40,000 Shoppers

The Product of the Year awards help shoppers find the best pet products, personal care items and everything in between.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

Why Cloth Masks May Increase Your Coronavirus Risk
Why Cloth Masks May Increase Your Coronavirus Risk

A new study finds that wearing a cloth mask can backfire if you don’t clean it properly.

11 Household Items That Go Bad — or Become Dangerous
11 Household Items That Go Bad — or Become Dangerous

When you get the impulse to stockpile these everyday items, pay close attention to their expiration dates.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

8 Things You Can Get for Free at Pharmacies
8 Things You Can Get for Free at Pharmacies

In this age of higher-priced drugs and complex health care systems, a trip to the pharmacy can spark worry. Freebies sure do help.

The 15 Worst States for Retirees in 2020
The 15 Worst States for Retirees in 2020

Based on dozens of metrics tied to affordability, quality of life and health care, these are not ideal places to spend retirement.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

The 10 Most Commonly Stolen Vehicles in America
The 10 Most Commonly Stolen Vehicles in America

A new model parks atop the list of vehicles that thieves love to pilfer.

This Is the Cheapest Place to Buy a Used Car
This Is the Cheapest Place to Buy a Used Car

Looking for a good deal on a set of wheels? This should be your first stop.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

5 Keys to Making Your Car Last for 200,000 Miles
5 Keys to Making Your Car Last for 200,000 Miles

Pushing your car to 200,000 miles — and beyond — can save you piles of cash. Here’s how to get there.

26 States That Do Not Tax Social Security Income
26 States That Do Not Tax Social Security Income

These states won’t tax any of your Social Security income — and in some cases, other types of retirement income.

10 Reasons Why You Should Actually Retire at 62
10 Reasons Why You Should Actually Retire at 62

If you can, here are several good reasons to retire earlier than we’re told to.

7 Surprising Features That Boost Your Home Value
7 Surprising Features That Boost Your Home Value

You can add value to your home without hiring a contractor to do expensive renovations.

5 Things That Make Life More Meaningful for Retirees
5 Things That Make Life More Meaningful for Retirees

Retirees agree: These are the things that give them purpose and fulfillment in their golden years.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.